Since mid-2020, a flurry of regulatory activity has put the Nigerian tech ecosystem on the defensive, forcing many startups to grow silently with mini

Nigeria’s regulatory clampdown is rattling startups

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2021-08-20 22:30:08

Since mid-2020, a flurry of regulatory activity has put the Nigerian tech ecosystem on the defensive, forcing many startups to grow silently with minimal media attention and spooking investors both at home and abroad. But now, a leaked document, which represents the most brazen attempt by the Nigerian government to oversee technology innovation in the country, has escalated concerns. 

The new bill bestows an obscure agency called the National Information Technology Development Agency (NITDA) with broader powers to license and tax technology companies. Many local tech insiders believe the government agency, set up in 2007 to advise and develop guidelines to foster the Nigerian tech sector, now looks more likely to hinder innovation in Africa’s fastest growing tech ecosystem.

NITDA had been working on the revamp for months, and its director general, Kashifu Inuwa Abdullahi, wants to upgrade it from a largely advisory agency to become a key regulator of Nigeria’s booming tech sector.

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